Holes through workpieces, such as metal plates, typically have an initial, rough diameter that is less than their desired final diameter, and are also axially misaligned from a desired design axis. Such holes are often predrilled by a conventional drill, and then taken to final size by a reamer, which cuts more finely and smoothly than the drill. The axial misalignment adversely affects the work of the reamer, however. The reamer is rotated about the design axis, but it enters a smaller diameter hole that is slightly offset from its axis of rotation, the design axis. The reamer to hole radial interference caused by the offset can bend the reamer slightly and shift it off of the design axis as it rotates. As a consequence, the finished hole, though brought to final diameter and brought closer to the design axis, will still be slightly offset from the design axis. The greater the original offset, the worse the final hole misalignment. In addition, the smaller the reamer diameter, the more subject the reamer is to bending. The degree of initial bending as the reamer enters the hole can be reduced with a stepped reamer. A stepped reamer has a smaller diameter first section, which creates less hole to tool interference, causing less initial tool bending. Though reduced, the tool remains bent as the larger second section enters the hole, so there is still some final hole mislocation.